Capabilities are a subset of a firm's resources and are defined as tangible and intangible assets that enable a firm to take full advantage of other resources it controls.

Question

Quizplus · Accepted Answer

This statement is true. Capabilities refer to the specific abilities or competencies that a firm possesses, which allow it to effectively utilize its resources and generate sustainable competitive advantages. These capabilities can be tangible (such as physical assets or technologies) or intangible (such as a well-trained workforce, strong brand reputation, or organizational culture).

Capabilities Are a Subset of a Firm's Resources and Are